New practices, profitability are making green building mainstream

Paul Etzler is a principal in Skoda Minotti's Real Estate and Construction Group.

“Green building.”“Sustainability.”“Environmental protection.”Few would argue against pro-environment practices reflected by these buzzwords. Whether it's the design team and contractors considering LEED certification utilizing alternative energies, the IT group disposing old computers in favor of Energy Star-rated boxes, the marketing department scrapping a five-page newsletter in favor of an e-blast, or you questioning the recyclability of a plastic orange juice container, every employee should be aware of the benefits and drawbacks of the green movement and the advantage of the triple bottom line – people, planet and profit.

How? Technology has allowed us to have brighter lights at a fraction of the energy use (planet). Information on these technologies is one click away on Google (people). Compliance with government mandates and decreased energy consumption saves money (profit). A facilities manager pursuing green goals won't wait until the chiller's deferred maintenance report dictates action – the cost of replacement can be far less than patchwork and minor repairs over the next few years. And, there may be tax credits, federal and state grants, and utility rebates for upgrades today.Opportunities for “free money” (profit) are usually the most attractive reasons for converting to an energy-efficient environment. The cost of green building is almost equal to “traditional” building. Even paint that conforms to low levels of volatile organic compounds is affordable.We are aware of the standards that must be reached – and maintained – to qualify for LEED certification. However, it is much more difficult to address, sustain and document “operating” activities that lead to energy efficiency. Lighting, solar cells and new chillers are quantifiable (profit) motives.

Another strategy, “deconstruction,” considers the people and planet motives as well. “Instead of hiring a bulldozer to level the structure, the owners hired a 'deconstruction' firm that aims to salvage between 50% and 80% of the structure; this action equated to $30,000 in profit to the local Habitat for Humanity” The Aspen Times reported in May 2012. From doors and windows to air conditioning units and concrete, there is a value to used items. Moreover, tax deductions may be available for the donation of discarded items. The American Taxpayer Relief Act extended tax deduction and tax credit provisions, with an eye toward energy efficiency. For example, the 15-year life on qualified leasehold improvements, and the increased U.S. 179 immediate expensing of personal property has been saved; U.S. 42, low-income housing tax credits and the new markets tax credits have been extended through this year; biodiesel and renewable diesel credits have been extended; and U.S. 45 credits related to electricity produced through wind are still available. According to WasteAge in May 2012, “Recycling rubber keeps millions of scrap tires out of landfills each year.” Advances in technology allow us to “use” the waste rather than “bury” the waste.“Green” is clearly now mainstream, actionable and profitable. By implementing an easy-to-understand program, you can maximize the impact of people, planet and profit, and move toward a sustainable – and value-added – tomorrow.Paul Etzler is a principal in Skoda Minotti's Real Estate and Construction Group. He is located at the firm's Mayfield Village office.

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